IASB meeting summaries and observer notes

IASB 24 August 2010

Page Content

At this meeting, the Board discussed a summary of feedback received on the pre-ballot draft of the exposure draft Deferred Taxes: Recovery of Underlying Asset. This draft had been circulated in response to the Board's tentative decision in July 2010 to introduce an exception to the measurement principle in paragraph 52 of IAS 12 Income Taxes.

In order to address the concerns raised in the feedback, the Board tentatively decided that the exception should:

apply when the expected manner of recovery of certain underlying assets is difficult and subjective to determine;

The Board also tentatively decided to ask in the exposure draft whether any specific transition guidance is necessary when the amendment is applied to previous business combinations.

Next steps

The Board instructed the staff to prepare the exposure draft Deferred Taxes: Recovery of Underlying Asset, reflecting these tentative decisions. The Board plans to publish the exposure draft for comment in early September with a 60-day comment period.